“EPS Explained Simply 📊 Why This ONE Number Decides Stock Prices” @CARachanaRanade

Описание: 📊 EPS Explained Simply | Why This ONE Number Decides Stock Prices
If you want to invest smarter and stop guessing in the stock market, you must understand EPS (Earnings Per Share).
In this video, we explain EPS in a simple, practical, and beginner-friendly way, so you can confidently analyze stocks like professional investors. EPS is one of the most powerful financial metrics used in fundamental analysis, and it plays a major role in deciding whether a stock price goes up or down.
Whether you are new to investing or already active in the stock market, this 8-minute video will change how you look at company profits forever.

🔍 What You’ll Learn in This Video
✔ What EPS (Earnings Per Share) really means
✔ How EPS is calculated with a simple formula
✔ Why EPS is crucial for stock valuation
✔ Different types of EPS (Basic, Diluted, Trailing, Forward)
✔ How EPS affects stock prices
✔ EPS vs Revenue – what matters more
✔ Common EPS mistakes investors make
✔ A simple EPS rule used by smart investors

📈 What Is EPS (Earnings Per Share)?
EPS stands for Earnings Per Share.
It shows how much profit a company earns for each share it has issued.
Simple formula:
EPS = Net Profit ÷ Total Outstanding Shares
A growing EPS generally indicates:
Strong business performance
Efficient management
Increasing shareholder value
That’s why EPS is one of the first numbers analysts and investors look at before buying a stock.

🧠 Why EPS Is So Important for Investors
EPS helps investors:
Compare companies in the same industry
Understand true profitability
Evaluate earnings growth over time
Decide whether a stock is overvalued or undervalued
Stocks with consistent EPS growth often attract long-term investors and institutional money.
📉 How EPS Impacts Stock Prices
Stock prices don’t move randomly.
They react to earnings expectations, and EPS plays a key role.
EPS higher than expected → stock price often rises
EPS lower than expected → stock price may fall
This is why earnings announcements create strong market reactions.

📌 Types of EPS Explained Simply
🔹 Basic EPS
Calculated using current outstanding shares.
🔹 Diluted EPS
Includes potential shares from options and convertibles.
📌 Gives a more conservative and realistic picture.
🔹 Trailing EPS (TTM)
Based on the last 12 months of earnings.
🔹 Forward EPS
Based on expected future earnings.
Understanding these types helps investors avoid misleading conclusions.
⚖️ EPS vs Revenue – Don’t Get Confused
Revenue shows how much a company sells.
EPS shows how much a company actually earns.
A company can increase revenue but still lose money.
That’s why smart investors focus on EPS growth, not just sales growth.

🚨 Common EPS Mistakes to Avoid
Not all EPS growth is healthy.
Watch out for:
EPS growth caused only by share buybacks
One-time profits inflating EPS
Falling revenue with rising EPS
Ignoring diluted EPS
Always understand why EPS is growing, not just that it is growing.
🏆 Simple EPS Rule for Beginners
If you remember one thing from this video:
Consistent EPS growth over time matters more than hype, news, or short-term market noise.
This rule alone can significantly improve your investing decisions.

⏱️ Video Chapters
00:00 – Why EPS Matters
01:10 – What Is EPS
02:30 – EPS Formula Explained
03:40 – Types of EPS
05:00 – EPS vs Revenue
06:20 – EPS Mistakes to Avoid
07:30 – Final Investor Rule
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